Parliament votes for review of electricity bills

| 21/09/2023 | 67 Comments

(CNS): How CUC and Island Energy, the power company for the Sister Islands, calculate the cost of electricity bills and work out fuel charges as well as the accuracy of meter readings could be the subjects of an independent investigation after the government accepted a private member’s motion Thursday, tabled by McKeeva Bush. The debate revealed that four MPs were unable to vote as they are shareholders in CUC.

Even though the government accepted the motion, during the debate there was an acrimonious exchange between Chris Saunders, who had seconded Bush’s motion, and Premier Wayne Panton.

Saunders suggested that Panton should not have been allowed to amend the original motion to include how the fuel factor is calculated because, while not a CUC shareholder, he owns shares in Clean Gas and therefore had an interest in the fuel market. Saunders accused his former boss of deliberately trying to undermine a motion that he was due to present later in the day asking the government to create a select committee to review fuel in general across the country.

Despite the row, the addition to the motion was carried, though Dwayne Seymour, Roy McTaggart, Joey Hew and Moses Kirkconnell all declared owning shares in CUC and were therefore unable to vote.

As he spoke about the reasons for bringing the motion and the impact the high cost of power bills is having on everyone, Bush revealed that he has had to seek a payment plan with CUC for the first time in his life after he received a bill of more than $4,000 earlier this year.

Despite earning somewhere between CI$180,000 and $200,000 per year as well as constituency and other allowances, Bush said he was struggling to pay his bills. He also said it was becoming more and more difficult to help his constituents, as he spoke about the controversial practice of many MPs of giving voters money to pay bills, rent and mortgages.

Bush said that while CUC provided a good service when it came to keeping the lights on, the very high bills needed some independent oversight, as he criticised the renewal of CUC’s licence without inserting conditions that could have helped the people. “Our families are under attack,” he said, referring to escalating fuel costs.

Bush also said that in the past he has had to complain to CUC about inaccurate meter readings. He questioned how it is possible to have such high bills when people are away for half of the month, suggesting that many people cannot understand the massive swings in bills, even when their power use declines.

Bush’s motion calls for the independent commission conducting the review to be made up of “knowledgeable” and “unconnected people”, as he questioned the role of OfReg, which is supposed to regulate all utilities and ensure that the power companies are providing fair and accurate bills.

“I don’t know… whether the law is ineffective or what has happened; I don’t know but certainly OfReg has not been effective in this regard,” he said.

After moving an amendment to the motion so that the review will look at how the fuel factor is calculated, given that it makes up around 70% of people’s bills, Panton said there was no doubt that the cost of bills for most Caymanian families was a major issue.

He argued that while CUC’s base rate was not the most expensive provider in the region, the fuel factor was high and the situation was made worse by rising temperatures. May and June this year were on average around 1.5 degrees higher than last year. As the planet gets warmer, the bills will continue to higher, which means that Cayman must transition to renewable energy to stabilise costs, as outlined in the new energy policy as quickly as possible, he said.

As Panton accepted the motion, he said he agreed that people must have a level of confidence and understanding about their bills, and what they are paying should be a fair and accurate reflection of what they consumed.

“We should be seeking to provide a level of, through this process as contemplated in this motion, a level of trust and confidence that they understand the way it works,” the premier added. However, as he submitted his amendment, he noted that the way the fuel factor impacts bills was also important to understand.

See the full debate during Thursday’s morning session in parliament on CIGTV below:


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Category: Business, Politics, utilities

Comments (67)

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  1. NoName says:

    Must be a slow news day , CUC produces the world’s most expensive electricity, I fondly remember the time when people were looking at me like I was an alien 👽 from outer space freshly off the flying saucer when I complained about power metering by CUC . I theredecided to address the matter by going off grid for all critical systems (A/C , internals etc ) leaving the car charger tied to CORE .

    Next shoe 👞 to drop will be the unification of compensation all across the CORE agreement to the lowest rate of 14 cents per kwh that CUC is pushing out for behind the curtain to put yet another nail into the coffin of renewables/solar on the island therefore forcing your maximum 10KW to collect 3.5 sun hours to compensate for your daily consumption on average during nightly cycle. Mark my words and I urge you to plan your accordingly!

  2. Anonymous says:

    Because McKeewa is complaining about his electricity bill, there will now be an enquiry. Why was nothing done when general public consumers complained for years – who cares if he cannot pay, disgusting – get a free ride in jail then.

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    • Anonymous says:

      So I don’t understand why the Premier asking for clarify on how the fuel factor is calculated. I would also like to know, probably everyone hooked up to CUC would like to know. While I would be grateful if something could be done to lower the cost of electricity I do believe that Mac and Chris only brought the motion to dig at Wayne. I am sure Chris Saunders knows bloody well how the fuel fracture is being calculated, it is just another one of their hideous ways to destabilize Cayman. Please do not take this as taking up for the Premier, he is as useless as the rest of them. Nothing will be done, CUC will continue to rip us off. Every couple of years there is this uproar about CUC and after all is said things remain the same. This is just another ploy for these jackasses to try to remain relevant. CUC has been around for ages, how is it that no one knows how the fuel factor is being calculated. Why have they been anle to renew their contracts over and over without “the way the fuel factor is calculated” being part of the discussions.

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      • Anonymous says:

        Why doesn’t PACT reduce the duty on the fuel CUC uses. Anybody with any sense knows the largest part of their bill is the fuel cost. Yet MP’s pretending they can’t do anything and insinuating it’s all CUC ripping us off.

  3. Anonymous says:

    There are lots of mysterious unchallenged monopolies in Cayman. Take for example the crappy car batteries that list for USD$75 at Pep Boys with a 3-5 year warranty are sold here for nearly KYD$300 with a 1 year warranty. Too many insulated rackets. We need fair dealing and a consumer protection agency. Consumers need to work together to warn others of the bad actors out there. Screwing people over is not the hallmark of astute business practice, but here it is venerated.

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  4. Anonymous says:

    massive corruption on meter readings… try going off island with the power on bare bones minimal operation compared to when you’re there for the full month using power… the CUC bill is still monstrously high! That’s what happens when you have a monopoly and why other countries prefer a monopoly from occurring.

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  5. Anonymous says:

    I think legal fees, hush money and a gambling addiction are McBeaters problem s here.

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  6. Nope says:

    But CUC has electrolytes? It should be fine.

  7. Anonymous says:

    This government needs to prove it has integrity and treat CUC for what it is, a bad actor prioritising profits over Cayman’s natural environment. They should be stripped of their monopoly over power distribution. In 2023 how can it be that only 3% of this island’s energy is sourced from renewables? Why has CUC taken so long to adapt? It’s case of dragging feet on a biblical scale yet they blame Ofreg.

    Ofreg was only created in 2017. Don’t hold your breath expecting this government to do anything meaningful. Wayne’s special interests in the natural gas and telecoms sectors translate into more of the status quo.

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  8. Anonymous says:

    Do people understand that a person with a few thousand CUC shares has virtually ZERO influence on the operations of the company. It is the same with any company which has 100’s of thousands of shares.
    This motion seems to me to be purely an election ploy and I feel the outcome of the review will show that and not make any difference to our bills. Plus some MP”s will still not understand the math.
    A lot of rubbish was spouted by the mover e.g. bills not reducing when a home is properly unoccupied. I left my 2 bed townhouse unoccupied with the A/C set to 83 degrees, fridge at minimum, water heater and other appliances off. My electric bill was around $50 per month.
    Note my water bill was around $20 for the same time frame with the supply shut off – zero usage. So which utility has the higher charges you say?

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    • Anonymous says:

      Shareholders have a vested interest in the status quo. They don’t need to have seats on the CUC Board or Mgmt team to be conflicted.

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      • Anonymous says:

        ….because as shareholders they benefit from annual dividends, guaranteed by government generated from the profits the company operators generate by raping the rest of us and obstructing the island’s path to renewables.

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  9. Anonymous says:

    Is Mckeeva correct when he says that the Government has renewed the CUC contract without looking out for the people. Arden signed the last contract and the whole country has been waiting for a new renegotiated contract which will benefit the public and provide more options for renewables as we promote more sustainability. The electricity rates have the most significant effect on the cost of living in the Islands so I hope like most times Keevie is wrong on this as well. I hear about conflicts of interest but I can’t believe the CUC contract could have been renewed without some public discussion.

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  10. Guido Marsupio says:

    I read my electric meter every month and compare my reading with the number on my bill. No chance of an error getting through.

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  11. Anonymous says:

    Is Bush trying to recreate the artic by setting his ac at freezing?!?

    4K a month!?!

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    • Anonymous says:

      His wife’s real estate company got the exclusive real estate deals on both the Hyatt/Britannia AND Ritz Carlton projects, didn’t it? Surely he can afford a $4,000 electricity bill.

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    • Anonymous says:

      Tell him to liquidate some of his assets if he’s broke.

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  12. Anonymous says:

    A lot to unpack here. Parliament are debating the job description of OfReg, the backbench admit their collusion with CUC, and Bush is admitting he bribes constituents. A busy day ahead for the ACC and SIPL Committee.

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    • Anonymous says:

      I believe the leaders in the ACC and SIPL departments already have a lot on their hands dealing with their own internal “issues.”

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  13. Anonymous says:

    It’s so embarrassing that we (once again) have someone who is sitting in the Speaker seat who does not have the requisite knowledge and experience related to the execution of Parliament’s Standing Orders. Wayne and co. have done the young woman sitting in this most prestigious seat a great disservice. How can she command the respect of parliamentarians and the country as a whole when it is clear that she is woefully not prepared? And it’s not her fault, only those who have done their time as an elected official for at least 2 terms and received the requisite training should sit in that seat. When will we learn?

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  14. Anonymous says:

    You mean OfReg’s highly paid employees are unable to explain in layman’s terms to Cabinet and Members of Parliament how charges on CUC’s and Island Energy’s bills are calculated???

    I am confused, why do we have OfReg then? Is it that MPs do not trust OfReg or don’t believe that they are capable??

    We all want to pay less for electricity so I am very keen to see how this now passed motion will develop. Please make the questioning of experts by the MPs on the committee to be set up a publicly broadcast event. I can’t wait!

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    • Anonymous says:

      Of course OFFREG can explain it.Chris Saunders and Mac not really interested in sitting down with OFFREG, this motion is just a dig at Wayne Panton. His life will be a living hell between now and next election! He must be kicking himself every day for the motley crew he coerced to put together. If it wasn’t so serious and scary it would b laughable!

  15. Anonymous says:

    >The debate revealed that four MPs were unable to vote as they are shareholders in CUC.

    And this kids is what we call conflict of interests. No member of Parliament should be allowed to hold shares in any private industry while sitting in office.

    All members should be required to place all outside sources of income into a blind trust when they take office.

    Any member found to be breaking these rules should be required to immediately vacate their seat and an interim member appointed until a special elections can be held and that person bared from ever holding public office again.

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  16. Anonymous says:

    It seem like the only good things happening for the people are coming from the Opposition. What has the Government done besides try to sabotage good motions and suggestions coming from the other side.

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  17. They paved Paradise.... says:

    What about petrol and diesel prices????

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    • Anonymous says:

      Expensive compared to the US, cheap compared to the rest of the world. What’s your point?

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  18. Anonymous says:

    Big time shareholders wont stand for this. D. O. A.

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  19. Anonymous says:

    Saunders you were overheard many times saying that Premier Panton was a good Premier. Now that you have been removed, you continue to seek to undermine him with your comments. There are many of us that do not like your insinuations of manipulation for your own political agenda.
    For McKeeva to be complaining about a light bill earning what he earns is laughable. It would take the average Caymanian 5 years to earn what he earns in one.
    The fact that McKeeva openly admitted to the practice of vote buying is also laughable.
    This country continues to elect these career politicians and those newcomers that are spineless and follow the same path to get into office.
    It would be a good day if the bill of rights actually worked and the public servants could have a voice so that the people knew the truth.
    While some public servants would not share their opinions as they seek to keep their jobs there are many who would stand up and call them out before the damage is done.
    Let’s see if any one them would bring a motion to support taking the gag order off public servants.

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  20. Anonymous says:

    yawn…waste of time.
    everything in cayman cost 2-3 times that of that states….

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  21. Anonymous says:

    “The debate revealed that four MPs were unable to vote as they are shareholders in CUC.” I’m shocked about this… that there were only 4.

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  22. Anonymous says:

    4k bill…he should put it on his government credit card.

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  23. Anonymous says:

    Isn’t that OffReg’s job?

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    • Anonymous says:

      Yes it’s OfRegs job but despite the colossal salaries and perks they are all receiving they are doing nothing.

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      • Anonymous says:

        If they would only ask OFFREG they would know. Chris was the Minister in charge of OFFREG, I feel sure he has all the information that he needs on all of the utility companies. That is not his issue, he just wants to stick it to Wayne. Why you ask? Wayne had him resign from his ministerial duties, Wayne has shares in a utility company, he is following Big Mac, trhey do not care. They will rant and rave, and nothing will change. Their voting base thinks they are making life better for them, they don’t want much, just a few dollars here and there, a couple load of fill, water is settling in the backyards this time of year. Christmas coming up, they will get a fruit cake and a turkey. Makes you want to vomit!, They are all alike.

  24. Anonymous says:

    Review in 30 seconds
    Non-existent competition environment creates monopoly imposed on captive audience.
    Decision makers amongst shareholders = conflict of interest!
    Quite straight forward really…

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    • Anonymous says:

      brilliant. this whole island could be run by 5 highly qualified civil servants from usa/ireland/uk.

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      • Anonymous says:

        Risible.

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      • Anonymous says:

        Not on my watch! Would be the last nail in the coffin for Caymanians, their culture and jobs.

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      • Anonymous says:

        Last I checked, the USA and the UK are a hot, steaming, stinking mess and have also caused a hot, steaming, stinking mess gloabally… Ireland ain’t doing badly – so I could be open to bringing in two CS from there. But the other three will remain Caymanian.

        You and your friends need to accept the FACT that this is the Cayman Islands and it’s the home of Caymanians. You are a migrant. If you don’t like that my people are entitled to the right to work, go help Trump in a second insurrection to finish his wall – or see if the UK needs any help on the paperwork to solidify BREXIT as it was massively successful and the Brits have no regrets.

        Fix the foundation in your house before you start talking about the cracks in the wall in mine.

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        • Anonymous says:

          Well said. Too bad they probably got PR or status already.

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        • Sir Humphrey says:

          3:27, BREXIT was massively successful?

          You are totally disilusional.

          You need to do a bit of reading and look at some data on the UK economy the past 5 years.

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